Eagle Ford Shale provided $61B economic boost to South Texas

AUSTIN — Last year, the Eagle Ford Shale had a $61 billion impact and supported 116,000 jobs across a 20-county swath of South Texas – a once sleepy region increasingly defined by an oil and gas boom.

The latest numbers from an ongoing University of Texas at San Antonio study continue to show a ballooning financial effect as the industry races to drill oil wells in the region.

The results of the study were released Tuesday at a meeting of the Eagle Ford Shale Caucus at the Texas Legislature, a group of South Texas lawmakers hoping to bring attention to the road, water, health and other infrastructure needs brought on by the influx of workers and truck traffic into the region.

It calculates both the direct economic impacts of oil and gas exploration in the region and the so-called indirect and “induced” economic activity.

The direct impact alone is enormous: the study counts more than 46,000 people directly employed thanks to the oil field last year.

The study paints a picture of a future South Texas that in many ways revolves around the oil and gas industry.

So far, more than 5,400 Eagle Ford wells have been permitted by the Texas Railroad Commission, but by 2022, the study expects more than 24,000 wells in the region.

Even as the field matures and fewer people work on drilling sites, there still will be thousands processing, transporting and refining that oil and gas, and everyone from attorneys to restaurant employees working along the way.

In a decade the study’s authors figure that a “new normal” will mean that oil and gas will remain the region’s economic behemoth, employing more than 36,000 people directly and with an economic output of more than $50 billion.

In 2022, more than 4,600 will work in the “food services and drinking industry” in the shale region, largely to cater to the oil patch.

“Not everyone can work in the oil and gas industry — people have to eat,” the report says.

The study breaks down the economic impact by looking at the 14 most productive counties, as well as six surrounding counties, including the San Antonio, Corpus Christi and Victoria areas, that have morphed into service providers, administrative centers and staging areas for the oil field.

It is from the larger 20-county area, which includes Bexar, Jim Wells, Uvalde, Victoria, San Patricio and Nueces counties, that Eagle Ford Shale activity generated $61 billion in economic impact and supported 116,000 jobs in 2012, according to the study.

In the 20-county area, the study puts the economic impact in 2022 at $89 billion and 127,000 jobs.

The oil and gas field already is sending money to state and local coffers.

Oil and gas producers in the 14 counties sent an estimated $374 million in severance taxes, taken as oil and gas are extracted, to the state last year.

Under a “moderate” projection, the study estimates that in 2022, the field will generate $1.8 million a year in local taxes and over $1.9 billion in state taxes, including severance taxes approaching $1 billion.

And even though they don’t have oil and gas production, the surrounding counties are seeing a boost.

The study says that Bexar County saw $161 million in construction activity last year for oilfield service corporations such as Halliburton and Platinum Energy Services and close to $24 million from regional pipeline construction.

The study also sees Corpus Christi continuing to emerge as a shipping and refining center. It already receives much of the oil coming from the western part of the field, and by 2022, the study forecasts that Valero Energy Corp.’s Corpus Christi plant will refine 150,000 barrels of oil per day, Flint Hills will refine 200,000 barrels per day and CITGO will refine 30,000 barrels.

Valero’s Three Rivers refinery already processes nearly 100,000 barrels a day of Eagle Ford crude, and the Nixon refinery in Gonzales County processes 15,000 barrels.

Photo: Jerry Lara / Associated Press

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Cattle rest on a field near Helena, Texas in Karnes County. In the last four years, more than 2,000 drilling permits have been issued for Karnes County. Oil production rose from 318,952 barrels in 2009 to nearly 46 million barrels through the first 10 months of 2013. less

Cattle rest on a field near Helena, Texas in Karnes County. In the last four years, more than 2,000 drilling permits have been issued for Karnes County. Oil production rose from 318,952 barrels in 2009 to ... more

Photo: Jerry Lara / Associated Press

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Cowboy Terry Stewart (right) tags a cow Monday September 30, 2013 on the Dillie Albert ranch south of Kenedy, Texas. While the quest for oil and gas continues in the Eagle Ford shale formation area, some ranchers in the area like Dillie Albert continue with cattle operations. less

Cowboy Terry Stewart (right) tags a cow Monday September 30, 2013 on the Dillie Albert ranch south of Kenedy, Texas. While the quest for oil and gas continues in the Eagle Ford shale formation area, some ... more

Photo: JOHN DAVENPORT / SAN ANTONIO EXPRESS-NEWS

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Dillie Albert waits Monday September 30, 2013 at her ranch south of Kenedy, Texas for cattle to be penned up. Albert still works cattle on her ranch while many of her neighbors in the Eagle Ford shale formation area have sold their interests to the oil and gas industry. less

Dillie Albert waits Monday September 30, 2013 at her ranch south of Kenedy, Texas for cattle to be penned up. Albert still works cattle on her ranch while many of her neighbors in the Eagle Ford shale ... more

Photo: JOHN DAVENPORT / SAN ANTONIO EXPRESS-NEWS

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Local residents listen to speakers during a town hall meeting on commercial disposal wellsThursday July 11, 2013 at Dilley Elementary School in Dilley, Tx.

Local residents listen to speakers during a town hall meeting on commercial disposal wellsThursday July 11, 2013 at Dilley Elementary School in Dilley, Tx.

Photo: Edward A. Ornelas / San Antonio Express-News

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Peggy Schultze Van Cleeve stands on FM 469 in La Salle County, north west of Cotulla, Texas, Tuesday, Sept. 10, 2013. In 1952, her father gave the state land for the county road. With oilfield-related traffic tearing paved farm roads in the area, the state want to convert them into gravel roads. less

Peggy Schultze Van Cleeve stands on FM 469 in La Salle County, north west of Cotulla, Texas, Tuesday, Sept. 10, 2013. In 1952, her father gave the state land for the county road. With oilfield-related traffic ... more

Photo: Jerry Lara / San Antonio Express-News

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Oil-field related traffic moves on FM 469 in La Salle County, north west of Cotulla, Texas, Tuesday, Sept. 10, 2013. With raffic tearing paved farm roads in the area, the state want to convert them into gravel roads. less

Oil-field related traffic moves on FM 469 in La Salle County, north west of Cotulla, Texas, Tuesday, Sept. 10, 2013. With raffic tearing paved farm roads in the area, the state want to convert them into gravel ... more

Photo: Jerry Lara / San Antonio Express-News

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Charles Covert, who owns a ranch in La Salle County, believes that he is suffering from the effects of hydrogen sulfide released from the oil and gas well seen behind the fence line, which is on a neighbor's property. less

Charles Covert, who owns a ranch in La Salle County, believes that he is suffering from the effects of hydrogen sulfide released from the oil and gas well seen behind the fence line, which is on a neighbor's ... more

Photo: Billy Calzada / San Antonio Express-News

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Charles Covert displays the medications that he takes since breathing hydrogen sulfide from an oil and gas well on a neighbor's property.

Charles Covert displays the medications that he takes since breathing hydrogen sulfide from an oil and gas well on a neighbor's property.

Oil related traffic moves along FM 81 by the Helena Latin Cemetery, in Karnes City, Texas. Located in Karnes County, the area has seen the effects of the oil boom due to the Eagle Ford Shale Play. In the last four years, more than 2,000 drilling permits have been issued for Karnes County. Oil production rose from 318,952 barrels in 2009 to nearly 46 million barrels through the first 10 months of 2013. less

Oil related traffic moves along FM 81 by the Helena Latin Cemetery, in Karnes City, Texas. Located in Karnes County, the area has seen the effects of the oil boom due to the Eagle Ford Shale Play. In the last ... more

Photo: Jerry Lara / Associated Press

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George Kowalik, 68, checks out his great-great-grandfather's 1860's house in Panna Maria, Texas. Kowalik retired three years ago from a career with the Farm Bureau and until recently, scraped by with the ranching business. That changed with the oil boom. less

George Kowalik, 68, checks out his great-great-grandfather's 1860's house in Panna Maria, Texas. Kowalik retired three years ago from a career with the Farm Bureau and until recently, scraped by with the ... more

Photo: Jerry Lara / Associated Press

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The Immaculate Conception Catholic Church steeple is seen beyond oil pump jacks in Panna Maria, Texas, Sunday, Dec. 15, 2013. The town is the site of oldest permanent Polish settlement in North America and has seen changes due to the oil boom from the Eagle Ford Shale play. Once a sleepy town, oil related traffic moves by the church and also brings more money to the coffers. Plans are underway to build a 14,500 square foot Panna Maria Heritage Center that will house a museum and a library. less

The Immaculate Conception Catholic Church steeple is seen beyond oil pump jacks in Panna Maria, Texas, Sunday, Dec. 15, 2013. The town is the site of oldest permanent Polish settlement in North America and has ... more

Photo: Jerry Lara / San Antonio Express-News

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Oil-field related traffic moves along Farm Road 81 by the Immaculate Conception Catholic Church in Panna Maria, Texas, Sunday, Dec. 15, 2013. The town is the site of oldest permanent Polish settlement in North America and has seen changes due to the oil boom from the Eagle Ford Shale play. Once a sleepy town, oil related business has brought more money to the coffers. Plans are underway to build a 14,500 square foot Panna Maria Heritage Center that will house a museum and a library. less

Oil-field related traffic moves along Farm Road 81 by the Immaculate Conception Catholic Church in Panna Maria, Texas, Sunday, Dec. 15, 2013. The town is the site of oldest permanent Polish settlement in North ... more

Photo: Jerry Lara / San Antonio Express-News

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An tractor trailer passes by highwal 35 next to Cotulla City as the City has shown huge growth thanks to the Eagle Ford Shale.

An tractor trailer passes by highwal 35 next to Cotulla City as the City has shown huge growth thanks to the Eagle Ford Shale.

Photo: Ulysses S. Romero

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These colorful multiunit apartments in Encinal along IH 35 provide housing for Eagle Ford Shale workers in the area.

These colorful multiunit apartments in Encinal along IH 35 provide housing for Eagle Ford Shale workers in the area.

A no vacancy sign is posted at Balia Inn Motel in Carrizo Springs, Texas, Thursday, June 9, 2011. The demand for living space by oilfield workers drawn to the area by the Eagle Ford play has forced the motel not to take reservations and rooms are available on a first come first serve basis. At the start of the day, the hotel had five rooms available but in not time, those rooms were rented. JERRY LARA/glara@express-news.net less

A no vacancy sign is posted at Balia Inn Motel in Carrizo Springs, Texas, Thursday, June 9, 2011. The demand for living space by oilfield workers drawn to the area by the Eagle Ford play has forced the motel ... more

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After a day at work, construction consultants Gary Cordell and Barry Mears head out for the local 9 hole golf course near Lonesome Creek RV Resort near Kenedy, Texas.

After a day at work, construction consultants Gary Cordell and Barry Mears head out for the local 9 hole golf course near Lonesome Creek RV Resort near Kenedy, Texas.

Photo: Tom Reel / San Antonio Express-News

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Dulce Terrazas salvages the remainder of lunch served to her crew during the day, as Andres Islas (center) and her brother Angel Terrazas unwind at Lonesome Creek RV Resort near Kenedy, Texas.

Dulce Terrazas salvages the remainder of lunch served to her crew during the day, as Andres Islas (center) and her brother Angel Terrazas unwind at Lonesome Creek RV Resort near Kenedy, Texas.

Photo: Tom Reel / San Antonio Express-News

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Trailers are packed into a gravel space at Lonesome Creek RV Resort near Kenedy, Texas.

Trailers are packed into a gravel space at Lonesome Creek RV Resort near Kenedy, Texas.

Photo: Tom Reel / San Antonio Express-News

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Oilfield Christian Fellowship created this custom bible created, as part of its outreach program to touch the lives of people working in the oil patch and places like the Eagle Ford Shale.

Oilfield Christian Fellowship created this custom bible created, as part of its outreach program to touch the lives of people working in the oil patch and places like the Eagle Ford Shale.

Photo: John Davenport / San Antonio Express-News

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Adam Garcia (left) who works laying pipe in the Eagle Ford Shale energy sector, assists Juan Rodriguez with a Bible passage during a meeting at Hosanna Baptist Church in Poteet, Texas. Several people who work in the Eagle Ford Shale energy sector attend the services. less

Adam Garcia (left) who works laying pipe in the Eagle Ford Shale energy sector, assists Juan Rodriguez with a Bible passage during a meeting at Hosanna Baptist Church in Poteet, Texas. Several people who work ... more

Photo: Billy Calzada / San Antonio Express-News

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Pastor Juan Florez leads Hosanna Baptist Church in Poteet, Texas, which ministers to people employed in the Eagle Ford Shale sector.

Pastor Juan Florez leads Hosanna Baptist Church in Poteet, Texas, which ministers to people employed in the Eagle Ford Shale sector.

Photo: Billy Calzada / San Antonio Express-News

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Andy Ervin speaks at The Quarry Golf Club during a meeting of the San Antonio chapter of the Oilfield Christian Fellowship. The group has created a custom Bible for oil field workers and attempts to touch the lives of men and women working in areas like the Eagle Ford shale formation. less

Andy Ervin speaks at The Quarry Golf Club during a meeting of the San Antonio chapter of the Oilfield Christian Fellowship. The group has created a custom Bible for oil field workers and attempts to touch the ... more

Photo: John Davenport / San Antonio Express-News

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Pastor Juan Florez (left) of Hosanna Baptist Church in Poteet, enjoys a moment with people in his congregation. Juan Rodriguez, who stands next to Pastor Florez, is seeking work; Adam Garcia, wearing the Yankees ball cap, is a machine operator in the Eagle Ford Shale energy sector; and Luis Gomez, wearing number 51, works in home construction. less

Pastor Juan Florez (left) of Hosanna Baptist Church in Poteet, enjoys a moment with people in his congregation. Juan Rodriguez, who stands next to Pastor Florez, is seeking work; Adam Garcia, wearing the ... more

Photo: Billy Calzada / San Antonio Express-News

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Adam Garcia, a machine operator who works laying down pipe in the Eagle Ford Shale energy industry, attends Hosanna Baptist Church in Poteet, Texas.

Adam Garcia, a machine operator who works laying down pipe in the Eagle Ford Shale energy industry, attends Hosanna Baptist Church in Poteet, Texas.

Photo: Billy Calzada / San Antonio Express-News

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Pastor Juan Florez, leads a mid-week worship service at Hosanna Baptist Church in Poteet, Texas. Several people who work in the Eagle Ford Shale energy sector attend the services.

Pastor Juan Florez, leads a mid-week worship service at Hosanna Baptist Church in Poteet, Texas. Several people who work in the Eagle Ford Shale energy sector attend the services.

Photo: Billy Calzada / San Antonio Express-News

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Virginia Terrazas (left) hands a Bloody Mary beverage to her sister-in-law Dulce Terrazas as they unwind and barbecue outside at the Lonesome Creek RV Resort near Kenedy, Texas.

Virginia Terrazas (left) hands a Bloody Mary beverage to her sister-in-law Dulce Terrazas as they unwind and barbecue outside at the Lonesome Creek RV Resort near Kenedy, Texas.

Humberto Montalvo stands in front of his Gillett General Store, which is experiencing brisk business due to the oil boom in South Texas.

Humberto Montalvo stands in front of his Gillett General Store, which is experiencing brisk business due to the oil boom in South Texas.

Photo: Tom Reel / San Antonio Express-News

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Cousins Victor Alaniz (left) and Joe Alaniz explain their economic choices in taking jobs away from home, as they return in the evening to the Lonesome Creek RV Resort near Kenedy, Texas.

Cousins Victor Alaniz (left) and Joe Alaniz explain their economic choices in taking jobs away from home, as they return in the evening to the Lonesome Creek RV Resort near Kenedy, Texas.

Photo: Tom Reel / San Antonio Express-News

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Joe Golding talks about his living circumstances at Lonesome Creek RV Resort near Kenedy, Texas.

Joe Golding talks about his living circumstances at Lonesome Creek RV Resort near Kenedy, Texas.

Photo: Tom Reel / San Antonio Express-News

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Nicole Garcia hugs her son, Johnny Joe Garcia, III, 3, at the Tips Park in Three Rivers, Texas, Monday, March 26, 2012. In back is her husband, Johnny Joe Garcia, Jr. The family has lived at the park for the past two months. He is a pipeline trucker. Jerry Lara/San Antonio Express-News less

Nicole Garcia hugs her son, Johnny Joe Garcia, III, 3, at the Tips Park in Three Rivers, Texas, Monday, March 26, 2012. In back is her husband, Johnny Joe Garcia, Jr. The family has lived at the park for the ... more

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Jose Tapia, 28, left, and Jose Pineda, 27, of Laredo, wait for their accommodations at the Mesquite Lodge in Carrizo Springs, Texas, Monday, March 19, 2012. Hotels, motels, man camps and RV parks are springing up throughout the Eagle Ford Shale counties. The workforce is now around 20,000. Jerry Lara/San Antonio Express-News less

Three-year-old J.J. Garcia, III, waits watching television while the family prepares for dinner at Tips Park in Three Rivers, Texas, Wednesday, March 29, 2012. Johnny Garcia, Jr., left, logs over 300 miles a day as a pipeline truck driver and his wife, Nicole, stays at home to take care of their son. He has been working oilfield related trucking on and off since 2007. The couple bought the travel trailer in Asherton and have lived at the park for over two months. Jerry Lara/San Antonio Express-News less

Three-year-old J.J. Garcia, III, waits watching television while the family prepares for dinner at Tips Park in Three Rivers, Texas, Wednesday, March 29, 2012. Johnny Garcia, Jr., left, logs over 300 miles a ... more

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A passing storms lights up the sky with ligthning by a rig near IH-37 South near Whitsett, Wednesday, March 29, 2012. Jerry Lara/San Antonio Express-New

A passing storms lights up the sky with ligthning by a rig near IH-37 South near Whitsett, Wednesday, March 29, 2012. Jerry Lara/San Antonio Express-New

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Welder Shawn Stelly, 26, left, of Lafyette, LA., watches as welder assistants, Amy Brown, 31, center, and Josh Peltcher, 27, practice on a pipe at Tips Park in Three Rivers, Texas, Monday, March 26, 2012. The two are hoping to move up to welder status and increase their pay. The city runs the park and it is filled with oilfield related workers. Jerry Lara/San Antonio Express-News less

Allen Fowler, 36, and his wife, Ashley, 21, live in company-provided housing at an RV park Eagle in Carrizo Springs, Texas, Monday, March 19, 2012. The East Texas residents were drawn to the Eagle Ford Shale area for the high paying jobs. Fowler sets up wells for drilling sites and earns $14.50 an hour. The higher pay come from working up to 90 hours a week. Jerry Lara/San Antonio Express-News less

Allen Fowler, 36, and his wife, Ashley, 21, live in company-provided housing at an RV park Eagle in Carrizo Springs, Texas, Monday, March 19, 2012. The East Texas residents were drawn to the Eagle Ford Shale ... more

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Jorge Castillo, 24, of San Juan, Texas, gets his laundry done at a laundromat in Carrizo Springs, Texas, Wednesday, March 28, 2012. The Rio Grande Valley resident took a job on a roustabout crew. The job is one of the lowest in the oil business and entails digging trenches, washing pits and moving rigs. Together with roommate and fellow worker, Juan Garcia, they earn $13 an hour and each pay $400 a month for a FEMA trailer in Asherton, Texas. But when there is no work, there is no money. The only jobs in the Valley available to Castillo would pay the minimum wage. Jerry Lara/San Antonio Express-News less

Jorge Castillo, 24, of San Juan, Texas, gets his laundry done at a laundromat in Carrizo Springs, Texas, Wednesday, March 28, 2012. The Rio Grande Valley resident took a job on a roustabout crew. The job is ... more

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After a long day of work in the oilfields, Roel Flores, 29, catches a moving at the Mezquite Lodge in Carrizo Springs, Texas, Monday, March 19, 2012. Some of the companies provide housing for their workers. Lodges made up of modular structures are poping up in the shale play area. Jerry Lara/San Antonio Express-News less

After a long day of work in the oilfields, Roel Flores, 29, catches a moving at the Mezquite Lodge in Carrizo Springs, Texas, Monday, March 19, 2012. Some of the companies provide housing for their workers. ... more

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Alan Roberts, 53, gets a haircut from Josie Wimberley at a man camp in Carrizo Springs, Texas, Wednesday, March 21, 2012. An oilfield worker all his adult life, Roberts said, "The good old days were the hard old days. If you lived on a drilling rig, you lived in a little room with six or eight guys on top of you." Jerry Lara/San Antonio Express-News less

Alan Roberts, 53, gets a haircut from Josie Wimberley at a man camp in Carrizo Springs, Texas, Wednesday, March 21, 2012. An oilfield worker all his adult life, Roberts said, "The good old days were the hard ... more

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Oilfield related traffic moves along FM 186 near Carrizo Springs, Texas, Wednesday, March 21, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio Express-News less

Oilfield related traffic moves along FM 186 near Carrizo Springs, Texas, Wednesday, March 21, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio ... more

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Traffic piles up at along State Highway 85 at the US 83 intersection in Carrizo Springs, Texas, Thursday, March 22, 2112. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio Express-News less

Traffic piles up at along State Highway 85 at the US 83 intersection in Carrizo Springs, Texas, Thursday, March 22, 2112. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry ... more

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Oilfield related traffic moves along FM 468 just northwest of Cotulla, Texas, Thursday, March 22, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio Express-New less

Oilfield related traffic moves along FM 468 just northwest of Cotulla, Texas, Thursday, March 22, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio ... more

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Oilfield related traffic moves along FM 468 just northwest of Cotulla, Texas, Thursday, March 22, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio Express-News less

Oilfield related traffic moves along FM 468 just northwest of Cotulla, Texas, Thursday, March 22, 2012. Traffic is up along most of the roads in the South Texas Eagle Ford Shale play. Jerry Lara/San Antonio ... more

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Truck traffic on East 468 Traffic on roads throughout the Eagle Ford Shale in South Texas, Wednesday, March 21, 2012. Jerry Lara/San Antonio Express-News

Truck traffic on East 468 Traffic on roads throughout the Eagle Ford Shale in South Texas, Wednesday, March 21, 2012. Jerry Lara/San Antonio Express-News

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A McMullen County Independent School District bus leaves the school in Tilden, Texas Wednesday February 15, 2012 as a tanker truck passes by. Tilden is in the Eagle Ford shale area where drilling for oil and gas is on the rise. Enrollment at the small school district's schools is also on the rise as people come to the area seeking jobs. John Davenport/San Antonio Express-News less

A McMullen County Independent School District bus leaves the school in Tilden, Texas Wednesday February 15, 2012 as a tanker truck passes by. Tilden is in the Eagle Ford shale area where drilling for oil and ... more

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Students from McMullen County Elementary School in Tilden, Texas play ball Wednesday February 15, 2012 as a tanker truck passes by the school's playground. The McMullen County Independent School District is in the Eagle Ford shale formation area and enrollment in the district has seen an increase of 27 percent as people come looking for jobs related to the oil and gas industry. Truck traffic in the small town has also increased dramatically. John Davenport/San Antonio Express-News less

Students from McMullen County Elementary School in Tilden, Texas play ball Wednesday February 15, 2012 as a tanker truck passes by the school's playground. The McMullen County Independent School District is in ... more